A Ropes & grey attorney used information he misappropriated from the firm to inform one of his co-defendants of pending, not-yet-public acquistions, the complaint filed against him says.
Litigation associate Arthur Cutillo is charged with securities fraud for allegedly providing information about the following transactions on which Ropes & grey worked:
- The June 2007 acquisition of Avaya, Inc. by Silver Lake and TPG Capital.
- The September 2007 acquisition of 3Com by Bain Capital Partners
- The November 2007 acquisition of Axcan by TPG Capital Partners
Ropes & grey represented Bain Capital in the 3Com acquisition and TPG in the Axcan acquisition. The complaint does not provide detailed information about the Avaya transaction.
The complaint describes dozens of calls and text between Cutillo and co-defedant Jason Goldfarb, both on cell phones and to and from the Ropes & grey offices. Cutillo and Goldfarb also exchanged text messages.
Goldfarb passed information obtained from Cutillo to Zvi Goffer, who worked at Schottenfeld and later Galleon. The complaint indicates that Goffer paid Goldfarb cash for at least some of the information.
The complaint also indicates Goldfarb was frustrated with Cutillo because he had used his phone to call Goldfarb and Goldfarb and Goffer then discussed purchasing three new pre-paid cell phones for the parties to communicate through.
As we noted this morning, Cutillo was a litigation associate, which makes it unlikely he would be staffed on these types of acquisition deals. We asked Ropes & grey whether he had billed any time to the matters, and a representative said that he does not have that information at this time.
Cutillo is a 2005 graduate of Villanova’s law school. A picture of Cutillo is here.
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